These are administrative rules of the Bureau of Environmental Services (BES) for the Systems Development Charges program. See the Explanatory Information in Appendix A for applicable code citations, policies, and other information relating to these rules.

1. Applicability

A System Development Charge (SDC) is a charge for connection and use, or increased usage, of City sewers, sewage treatment systems, storm sewers and drainage systems. This charge is collected to reimburse the City ratepayers for design, construction, acquisition, operation, maintenance, and discharge requirements of the City of Portland for sewage and drainage management including conveyance, treatment and disposal of sewage and drainage flows generated by development.

2. Purpose

Chapter 17.36 of the Portland City Code (PCC) requires properties connecting to sewer and drainage systems under City control to pay the appropriate fees and charges. The intent of the SDC is to recover from new development an equitable share of the costs of providing additional capacity in, operating, and maintaining the City sanitary sewer, storm sewer and drainage system.

3. Definitions

These rules use terms defined in PCC Chapter 17.36 and the following:

A. “Accessory Dwelling Unit” means a separate, smaller dwelling unit on the same tax lot as the primary dwelling structure.

B. “Return on Equity” means the rate of return on ownership interest by all ratepayers who have funded capital construction of the City’s sewer, storm sewer and drainage system and assets.

4. Regulatory Authority

Oregon Revised Statues section 223.297 authorizes local jurisdictions to collect systems development charges for “…equitable funding for orderly growth and development in Oregon’s communities and to establish that the charges may be used only for capital improvements.”

PCC 17.36.040 authorizes the Director of BES to collect fees, including SDCs.